Oslo Børs VPS Holding ASA 2nd Quarter 215 12 August 215
2nd quarter at a glance Good level of trading and settlement activity continued in the quarter Continuing strong interest in admission of both shares and bonds to stock exchange listing - seven new listings in the quarter High level of activity and increased income from issuer services and corporate actions Reduced costs for issuers from introduction of electronic messaging to investors Oslo Børs to open a new marketplace Merkur Market Oslo Børs has launched a new index for medium-sized companies Oslo Børs Mid Cap Index 2
NOK million NOK million 2nd quarter at a glance Revenues up NOK 13 million to NOK 234 million from 14 Expenses up NOK 8 million to NOK 11 million from 14 EBITDA up NOK 4 million to NOK 124 million from 14 25 2 15 1 5 Revenues Oslo Børs VPS 23 231 222 232 226 234 29 29 13 13 14 14 14 14 15 15 14 12 1 8 6 4 2 EBITDA and EBITDA-margin Oslo Børs VPS 53% 54% 48% 5% 52% 53% 5% 47% 47% 11 111 115 12 124 4% 19 19 16 3% 2% 1% % 13 13 14 14 14 14 15 15 EBITDA EBITDA margin 3 Oslo Clearing is presented as discontinued operation. Revenues and EBITDA 13 to 14 are restated.
NOK million NOK 1 Oslo Børs Revenues up NOK 8 million to NOK 115 million from 14 EBITDA up NOK 8 million to NOK 68 million from 14 15 1 5 Revenues Oslo Børs 213 213 213 215 215 Equity Markets Fixed Income Markets Derivatives Markets Financial Market data Other 8 6 4 2 EBITDA and EBITDA-margin Oslo Børs 7% 59% 69 56% 55% 56% 58% 59% 6% 53% 68 64 64 59 61 64 49% 5% 53 4% 3% 2% 1% % 13 13 14 14 14 14 15 15 EBITDA EBITDA margin 4
Number No. of issuers NOK 1 Oslo Børs primary market Steady increase in number of listed bonds and certificates 5 Revenues primary market Fixed fees from issuers up NOK 2 million to NOK 26 million from 14 4 3 Fixed fees driven by number of issuers and market capitalisation January 1 2 1 Market cap. issuers 215 down 1% from 213 213 213 215 215 Fixed fees- issuers Prospectus and admission fees Number and market value of listed bonds and certificates Number of and market capitalisation of issuers of equity 1 8 1 7 1 6 1 5 1 4 1344 1 57 1425 1414 1 523 1 57 1442 1454 1 613 1475 159 1 679 1 69 1 695 1571 1546 1 79 1 715 13 13 13 14 14 14 14 15 15 16 14 12 1 3 2 1 2145 1968 23 297 288 291 1955 1795 166 223 217 218 213 216 219 22 216 218 13 13 13 14 14 14 14 15 15 25 2 15 1 5 Number Value (NOK bill) No. of issuers Market cap (NOK bill) 5
NOK million Oslo Børs primary market Prospectus and admission fees up NOK 3 million to NOK 17 million in 15 Revenues driven by number and size of IPOs and issues Seven new listings in 15 Continued interest for listing of both equities and fixed income 8 6 4 2 7 7 6 6 5 3 2 2 1 13 13 13 14 14 14 14 15 15 16 14 12 1 8 6 4 2 New listings Issues of equity 13 669 9 53 8 61 4 57 4 523 4 758 4 583 3 55 1 865 13 13 13 14 14 14 14 15 15 6
Value NOK 1 Oslo Børs secondary market Revenues from trading on Oslo Børs and Fish Pool up NOK 1 million to NOK 33 million from 14 Value of equity turnover on Oslo Børs up 17% from 14 - Revenues up NOK 2 million 6 5 4 3 2 1 213 Revenues secondary market 213 213 215 Equities trading Derivatives trading Fixed Income trading 215 Derivatives revenues driven by activity level and composition of derivatives trading 7 - No of contracts on Oslo Børs down 19% from 14 - Volume on Fish Pool down 47% from 14 - Revenues down NOK 1 million from 14 4 3 2 1 Equities - value of turnover and number of transactions 4 489 4 35 215 193 4 88 247 5 529 291 4 982 242 5 46 23 7 878 7 479 344 337 5 989 13 13 13 14 14 14 14 15 15 Value (NOK bill) Trans (1) 283 8 6 4 2
NOK 1 Oslo Børs market data Revenues up NOK 1 million to NOK 33 million from 14 Revenues primarily driven by number of professional end users of data from Oslo Børs Professional users estimated up 6% from 14 45 4 35 3 25 2 15 1 5 4 35 3 25 2 15 1 5 39 96 213 213 38 66 39 316 Revenues market data 213 Market data - number of end-users 4 338 39 39 39 351 4 369 215 42 43 215 4 77 13 13 13 14 14 14 14 15 15 8
Key market activities Market activities to attract issuers - Domestic and international - Equities and fixed income - MIFID II opportunity for new products and services - Establishing Merkur Market Market activities to attract new trading members and increase market share in trading - Continuous improvement of microstructure - Efficient post trade 9
NOK million NOK 1 VPS Revenues up NOK 5 million to NOK 119 million from 14 EBITDA down NOK 3 million to NOK 59 million from 14 Modernisation of core IT-system following plan 15 1 5 213 213 Revenues VPS 213 215 215 Investor products Issuer products Settlement products Fund products Other revenues 7 6 5 4 3 2 1 EBITDA and EBITDA-margin VPS 54% 55% 51% 48% 47% 49% 5% 46% 45% 62 57 41% 41% 59 54 54 35% 48 49 43 46 25% 15% 5% -5% 13 13 13 14 14 14 14 15 15 EBITDA EBITDA margin 1
NOK million NOK 1 VPS investor products Revenues up NOK 2 million to NOK 29 million from 14 Revenues primarily driven by number of VPS accounts and market value of holdings January 1 - Accounts and holdings January 1 215 in level with January 1 35 3 25 2 15 1 5 1 Revenues investor products 213 1227 124 213 213 4781 4743 4773 215 Number of investor accounts and market value of holdings 4737 4641 4581 184 4589 163 166 176 165 177 198 215 48 46 5 4317 437 44 42 13 13 13 14 14 14 14 15 15 Income-earning accounts (1) Holdings (NOK bill) 4 11 Please note change from gross number of investor accounts to number of investor accounts that directly affect the revenues of Investor products
NOK 1 VPS issuer products Revenues up NOK 2 million to NOK 41 million from 14 Revenues driven by number and composition of issuers and level and composition of corporate activity - AGM-season in Additional revenue from value added products - AGM-services - Bond holders meeting - Stock purchase programs - Nominee-ID 3 2 5 2 1 5 1 5 5 4 3 2 1 213 Number of companies and bond issues registered 2223 2216 Revenues issuer products 213 213 2292 2338 2378 2383 2354 2341 2332 1 158 1 139 1 126 1 12 1 14 1 98 1 97 1 63 1 56 13 13 13 14 14 14 14 15 15 Companies Bond issues 215 215 12
NOK 1 VPS settlement products Revenues down NOK 1 million to NOK 25 million in 15 Revenues driven by number of participants and number of settlement transactions 3 25 2 15 1 5 213 Revenues settlement products 213 213 215 215 Number of trade transactions processed in VPS (1) 4 3 5 3 2 5 2 1 5 1 5 3 45 3 366 3 27 2 896 2 758 2 76 2 784 2 516 2 467 13 13 13 14 14 14 14 15 15 13
NOK 1 VPS fund products Revenues in 15 up NOK 2 million to NOK 22 million from 14 Evolution up NOK 1.5 million Revenues in VPS primarily driven by assets under management and number of transactions Strong competition from international providers and internal IT in targeted markets 6 5 4 3 2 1 3 25 2 15 1 5 1177 1173 389 213 415 213 Revenues fund products 213 Asset under management and number of transactions 118 452 115 461 499 498 58 91 884 919 542 536 13 13 13 14 14 14 14 15 15 989 215 945 215 15 1 5 AUM (NOK bill) Transactions (1) 14
Oslo Market Solutions Revenues up NOK.6 million from 14 8 Revenues and EBITDA Oslo Market Solutions EBITDA down NOK.5 million from 14 6 4 2 4,8 5,1 6,5 6,3 5,1 4,2 5,2 5,1 5,7,7 1, 1,7 1,5 1,1,5,2 1, 13 13 13 14 14 14 14 15 15 Revenues EBITDA 15
Summary Continued relatively good activity in the capital markets Continued intense competition and pressure on market share Continuous focus on operating costs Continuous assessment of new products and new positions in order to adapt to challenging competitive environment Focus forward - Attract new listings/registrations and members - Increased sale to existing customers - Strengthen competitive position in secondary market - Successful execution of projects - modernisation of VPS IT 16
Appendix
P&L 2nd Quarter 2nd Quarter Change 3 June 3 June Change 215 in % 215 in % 213 Restated Restated Operating revenues 234 279 221 559 6 % 46 51 452 398 2 % 892 742 Operating expenses Capitalisation of internal resources -258-1 79-1 79 Salary and other personnel expenses 61 635 57 549 132 849 125 969 261 573 Other operating expenses 48 694 44 426 98 73 91 622 178 252 Depreciations and write-downs 11 639 12 188 24 817 24 322 47 527 Amortisations 816 2 964 1 631 41 927 83 853 Operating expenses before capitalisation of internal resources, depreciations and amortisations 11 329 11 975 8 % 23 922 217 591 6 % 439 825 Total operating expenses 122 784 134 869-9 % 257 37 282 131-9 % 569 496 EBITDA 123 95 119 584 4 % 229 588 234 87-2 % 452 917 Operating profit (EBIT) 111 495 86 69 29 % 23 14 17 267 19 % 323 246 Net financial items 3 447 4 889 7 97 7 451 19 284 Ordinary pre-tax profit 114 942 91 579 21 237 177 718 342 53 Tax 32 862 24 498 57 95 47 537 9 482 Earnings for the period - continued operations 82 81 67 81 22 % 152 288 13 181 17 % 252 48 Earnings for the period - discontinued operations 48 714-1 % 52 78-1 % 52 78 Earnings for the period 82 81 115 794-29 % 152 288 182 258-16 % 34 126 Actuarial gains/losses defined benefit pension plans -21 55 Tax-effect 5 685 Total comprehensive income 82 81 115 794-29 % 152 288 182 258-16 % 288 756 Earnings per share (NOK) - continued operations 1,91 1,56 22 % 3,54 3,3 17 % 5,86 Diluted earnings per share (NOK) - continued operations 1,91 1,56 22 % 3,54 3,3 17 % 5,86 Earnings per share (NOK) - discontinued operations, 1,13-1 %, 1,21-1 % 1,21 Diluted earnings per share (NOK) - discontinued operations, 1,13-1 %, 1,21-1 % 1,21 Earnings per share (NOK) before amorisations 1,92 3,4-37 % 3,57 4,94-28 % 8,5 18
Breakdown revenues Oslo Børs segment Revenues per area 215 3.6.215 3.6. Equity Markets 58 342 51 476 11 158 113 25 224 887 Fixed Income Markets 12 554 11 35 24 345 21 857 45 419 Derivatives Markets 7 81 9 14 15 349 19 244 4 262 Financial Market data 32 799 31 532 66 379 61 761 127 74 Other 2 988 3 215 6 232 6 842 11 373 Total Oslo Børs 114 493 16 669 222 464 222 73 449 14 Revenues per category 215 3.6.215 3.6. Fixed fees- issuers 25 723 23 744 5 233 47 58 98 746 Trading fees 32 57 31 414 68 557 73 11 144 4 Prospectus and admission fees 17 81 13 761 24 481 27 954 55 696 Financial market data 32 799 31 532 66 379 61 761 127 74 Other income 6 32 6 218 12 814 12 856 23 496 Total Oslo Børs 114 493 16 669 222 464 222 73 449 14 19
Breakdown revenues VPS segment VPS 215 3.6.215 3.6. Investor products 29 323 27 523 6 534 58 779 113 739 Issuer products 4 899 39 76 73 457 71 137 131 92 Settlement products 25 353 26 19 52 646 51 943 14 3 Fund products 21 63 19 583 46 892 42 932 84 137 Other revenues 1 363 1 613 2 893 3 683 6 97 Total VPS 118 568 113 985 236 422 228 474 44 769 2
Balance sheet Fixed assets 3 June 3 June 31 Dec 215 IT-systems 91 681 126 47 89 82 Customer relations - 7 731 - Registrations 9 7 9 7 9 7 Goodwill 5 988 498 381 5 988 Deferred tax assets 59 58 55 597 59 58 Tangible assets 55 98 53 329 59 12 Financial fixed assets 17 899 15 567 18 34 Current assets Receivables 112 214 14 828 93 93 Cash and cash equivalents 614 83 824 19 781 217 Assets 1 461 991 1 695 37 1 611 624 Equity Contributed equity 976 169 1 22 953 1 176 298 Non-controlling interests 51 1 5 1 132 Total equity 976 679 1 23 958 1 177 43 Liabilities Pension liabilities 167 768 146 51 167 711 Deferred tax liabilities 4 593 16 923 4 951 Current liabilities 312 952 268 222 261 532 Equity and liabilities 1 461 991 1 635 613 1 611 624 21
Cash flow 2nd Quarter 2nd Quarter 3 June 3 June 215 215 Cash flow from - operational activities 37 957 42 481 22 858 217 15 382 344 - investment activities -1 47-99 98-17 823-661 611-676 373 - investments in systems and tangible assets -13 519-191 -25 25-5 69-33 343 - investments in subsidiaries 59 286 59 286 62 588 - investments in treasury bills and bonds 446 524 362 912 362 912 - received cash collateral from members -1 42 352-1 9 75-1 9 75 - financial income 3 472 5 635 7 22 11 875 21 545 - financing activities -35 85-31 467-351 422-32 639-496 44 Cash and cash equivalents at period's start 937 725 1 992 274 781 217 1 571 29 1 571 29 Change in cash and cash equivalents -322 895-1 168 84-166 387-747 1-79 73 Cash and cash equivalents at period's end 614 83 824 19 614 83 824 19 781 217 Cash flow per share (NOK) -7,51-27,16-3,87-17,37-18,37 22
Equity 2nd Quarter 2nd Quarter 3 June 3 June 31 Dec 215 215 Equity at period's start 1 246 74 1 449 383 1 177 43 1 382 67 1 382 67 Total comprehensive income 82 81 115 794 152 288 182 26 34 126 Dividends -351 194-3 95-351 194-3 95-494 54 Purchase of own shares 414-124 -123 232 196 Acturial gains/losses in the period -15 37 Change in non-controlling interests -1 362-387 -1 722-497 312 Equity at period's end 976 679 1 263 715 976 679 1 263 715 1 177 43 Equity ratio 67 % 75 % 67 % 75 % 73 % 23
Largest shareholders 1 August 215 24
Share price Oslo Børs VPS Holding ASA 25